theguardian.com
AustralianSuper Divests \$26.8 Million from Aristocrat's Shares Due to Ethical Concerns
Australia's largest superannuation fund, AustralianSuper, divested \$26.8 million in Aristocrat shares from its "socially aware" fund due to ethical concerns about the gambling industry, adding gambling to its exclusion criteria alongside tobacco, nuclear weapons, animal welfare concerns, and palm oil.
- What is the significance of AustralianSuper's divestment of \$26.8 million in Aristocrat shares from its socially aware fund?
- Australia's largest superannuation fund, AustralianSuper, divested \$26.8 million in Aristocrat shares from its "socially aware" fund due to ethical concerns about the gambling industry. This decision follows a review aiming to meet members' expectations and now excludes investments in gambling-related companies, exceeding 5% revenue from gambling, or licensing their brand to gambling products. The divestment reflects growing societal pressure regarding the social harms associated with gambling.
- How does AustralianSuper's decision compare to the investment strategies of other Australian superannuation funds regarding Aristocrat?
- The divestment of Aristocrat shares by AustralianSuper's socially aware fund highlights the conflict between financial returns and ethical considerations in investments. While other superannuation funds like Australian Retirement Trust and UniSuper have increased their holdings in Aristocrat, AustralianSuper's action signals a shift towards prioritizing ethical investing for a segment of its members. This is notable given Aristocrat's high financial performance, as noted by Morningstar Sustainalytics, which further underscores the ethical dilemma for investors.
- What are the potential long-term implications of AustralianSuper's decision on the superannuation industry's approach to ESG investing and the gambling industry?
- AustralianSuper's move could pressure other superannuation funds to reconsider their investments in gambling-related companies. The growing public awareness of gambling harm, coupled with increasing regulatory scrutiny, may lead to further divestments and a reevaluation of Environmental, Social, and Governance (ESG) investment criteria within the superannuation industry. The significant increase in gambling losses in New South Wales (\$2.17 billion in 90 days) and Victoria (social cost doubled since 2014-15) further strengthens arguments for such shifts.
Cognitive Concepts
Framing Bias
The article frames the story primarily around AustralianSuper's decision, emphasizing the ethical considerations of its socially aware fund. While the divestment is significant, the article's framing might lead readers to focus more on the ethical implications than on the overall financial performance and market trends of Aristocrat and similar companies. The headline itself could be seen as framing the issue with a focus on the ethical concerns.
Language Bias
The article generally maintains a neutral tone, using factual language to describe the events and perspectives. However, terms such as "socially aware" and "ethically minded" carry positive connotations that subtly favor the ethical argument. While neutral alternatives like "ESG-focused" and "members prioritizing ethical investments" might be used, the current wording isn't significantly biased.
Bias by Omission
The article focuses heavily on AustralianSuper's divestment from Aristocrat, but omits discussion of the broader context of gambling regulation in Australia and the potential impact of such regulations on the gambling industry's future. It also doesn't delve into the specifics of Aristocrat's responsible gambling initiatives beyond a brief mention. This omission might limit readers' understanding of the complexities involved.
False Dichotomy
The article presents a false dichotomy by framing the issue as a simple choice between ethical investing and financial returns. The reality is more nuanced, as demonstrated by Michelle Cameron's quote highlighting the tension between Aristocrat's strong financial performance and the ethical concerns surrounding its core business. This framing could oversimplify the complex considerations faced by superannuation funds.
Sustainable Development Goals
The article highlights AustralianSuper's divestment from Aristocrat, a gambling company, in its "socially aware" fund. This decision reflects a commitment to responsible investment practices and aligns with SDG 12, which promotes responsible consumption and production patterns to reduce negative social and environmental impacts. The divestment demonstrates a move away from supporting industries with significant social harms, such as problem gambling.